Maggie Beer sells half the business for $15 million
Culinary icon Maggie Beer has just sold 48 per cent of Maggie Beer Products to listed marketing technology company Primary Opinion for $15 million.
The sale comes after the gourmet food producer had shelved plans to list her company on the Australian Stock Exchange, following in the footsteps of the likes of dairy co-op Murray Goulburn, fruit and vegetable icon Costa Group and the Jan Cameron-backed organic baby-foods maker Bellamy’s.
Primary Opinion, which had originally traded as ASX-listed social media company Jumbuck Entertainment, told the market that Maggie Beer had been targeted as part of a wider investment strategy focussed on the food and beverage sector.
It said Maggie Beer Products will pick up $10 million to expand the business.
“Primary Opinion believes that by providing capital and expertise to MBP, this iconic business will be in a strong position to grow domestically and explore export opportunities for its existing product suite as well as accelerate new product development,” Primary Opinion said.
The acquisition will be funded through a $25 million capital raising, via a share issuance.
It will include a priority offer for Primary Opinion shareholders and Maggie Beer Food Club members.
Maggie Beer is now one of the largest employers in South Australia’s Barossa Valley. It produces more than 200 gourmet food products for local and export markets, including fruit pastes, jams, sauces, ciders and ice-creams. The company she started with her husband Colin employs more than 100 people. Maggie Beer has become a national television star and author. She makes appearances on Network Ten's Master Chef and an ABC television show, The Cook and the Chef.
Former Victorian premier Jeff Kennett, who holds about 7.65 per cent of Primary Opinion, was enthusiastic about what the deal promised.
“Maggie Beer as a name is an Australian icon," Mr Kennett told the Australian Financial Review.
"To me this is very, very exciting ... We will leverage up from here."
By Leon Gettler, May 12th 2016
